Has Gold Reached A Low?

In our previous update on Gold on 21 Nov 2019, we had warned about a possible decline in gold as price was unable to move above 1475. Price has decline to a low of 1451 yesterday. Our target was for a decline to 1445.

On the 4-hourly chart, we have seen a nice Hammer candlestick price pattern at the low of 1451, could this signal the low for Gold? Stochastic is in the oversold extreme and could be about to rise. However, MACD is still bearish with both its line below the zero line. MACD histogram is also showing weak momentum. Price is also below the 20EMA and has fallen below the Fibonacci 62% of the rally from 1445.50 to 1478.85.

We think there may be another decline to 1445 to complete the downtrend. The trend is only going to turn bullish if price can move above 1462.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.